China vows to 'fight back' after USA threaten $200bn tariffs on goods

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Hours after the announcement was released, China's Ministry of Commerce issued its own statement, expressing a "solemn protest" against the United States.

One of Canada's top economists says Canada is caught in the crossfire of a U.S.

He spoke Wednesday at China's turn for a regular WTO review of countries' trade policies. "It will also result in retaliatory tariffs, further hurting American workers", a Chamber spokeswoman said.

The Chinese government has vowed to take "firm and forceful measures" against US threats to expand tariff hikes.

Washington on Tuesday announced it was starting the process to slap 10-percent tariffs on another $200 billion in Chinese export goods as soon as September.

Many companies in the USA are opposed to the administration's use of tariffs against China, saying they risk hurting business and the economy without being likely to change behaviour.

The Trump administration's latest shot in the trade war with China has sent shudders through global financial markets.

This action follows tariffs of 25% imposed on $34 billion worth of Chinese goods, made effective July 6; flooring was not included on that list.

U.S. Trade Representative Robert Lighthizer said the United States would impose tariffs of 10 percent on additional Chinese imports worth $200 billion.

"The behaviour of the USA is hurting China, hurting the world and hurting itself", a spokesperson for China's commerce ministry said in a statement. It said Beijing would take unspecified "necessary countermeasures" to protect its "core interests".

"Given China's likelihood of retaliation, it's also billions worth of new tariffs on American exporters".

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"Trump's escalation of trade hostilities makes it increasingly hard to envision an exit path from an all-out trade war".

The latest round of import taxes on Chinese goods has a two month public commentary period and the United States administration is being open about the fact that they expect China to discuss the move leading one to wonder if it will actually be imposed.

China immediately retaliated with duties on the same value of us goods, including soybeans and cars.

Traders instead focused their attention on where a ratcheting of Sino-U.S. trade tensions will likely hit fastest - in China and in Asia where countries like Australia depend on Chinese demand for their exports.

Senate Finance Committee Chairman Orrin Hatch called it "reckless", adding that the tariffs were "not a targeted approach".

In addition, the U.S. is considering duties on a further US$16 billion in Chinese goods, after a public hearing later this month.

Trump has said the tariffs are meant to punish China for using unfair trade practices.

One problem for Beijing is that it imports far less from the USA than it exports - much to the annoyance of Donald Trump - and that gives it less scope to retaliate - they may run out of American goods to penalise.

Beijing has vowed to "fight back as usual" after Donald Trump's tit-for-tat trade war with China escalated once again last night.

China may respond to Trump's $US200 billion trade threat by targeting USA subsidiaries in China.

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